Manhattan Associates Inc (MANH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 266,230 | 270,741 | 225,463 | 263,706 | 204,705 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 400,304 | 365,915 | 315,595 | 249,042 | 196,986 |
| Cash ratio | 0.67 | 0.74 | 0.71 | 1.06 | 1.04 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($266,230K
+ $—K)
÷ $400,304K
= 0.67
The cash ratio of Manhattan Associates Inc has exhibited fluctuations over the past five years. Starting at 1.04 on December 31, 2020, it slightly increased to 1.06 by December 31, 2021. However, in the subsequent years, the ratio experienced a downward trend, declining to 0.71 by December 31, 2022, 0.74 by December 31, 2023, and further to 0.67 on December 31, 2024.
The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A ratio above 1 indicates that the company has sufficient cash to cover its short-term liabilities, while a ratio below 1 suggests that it may struggle to meet its obligations promptly.
In this case, the decreasing trend in Manhattan Associates Inc's cash ratio may raise concerns about its liquidity position over time. Management should closely monitor the company's cash position and financial operations to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024